Despite the low currency value and the shift in the economy last year, revenue made by Hasbro increased by 5% thanks to strong sales of licensed toys’ released by the company such as Transformers and My Little Pony.
Hasbro revealed that there was in increase in the last quarter of 2014 compared to the previous year with the same timeline. During the fourth quarter of 2013, net earnings by the company valued at $148.8 million and increased to $154.9 million last year or a share of $1.12 increased to $1.22. Last month there was a 7% increase in the company’s shares which is at $59.66.
Nowadays, kids are more inclined to purchasing toys and games that are digital. This obvious preference made it hard for toymakers to create new products that will appeal to children.
The last few years were good for Hasbro in terms of international market because of its positive operations in foreign countries. The company made $2.02 billion last year from overseas sales and the figure turns out to be half of their total revenue which had an 8% compared to 2013. Meanwhile, the total revenue last year from United States and Canada was $2.02 billion and had a 1% increase.
The fluctuating strength of the US dollar affected the company in a negative way. Last year the recorded revenue was only 5% ($4.28 billion) and should have been 7% if not for the foreign exchange rates.
Last quarter’s revenue was also affected by the currency fluctuations and turned out to have a 1% increase instead of 7%, deducted amount was around $75.4 million.
Last 2014, the adjusted net earnings rose to $408.7 million because of the 10% increase and the share going up to $3.15 per earning.
According to an analyst, Sean McGowan, the biggest industry problem faced by Hasbro was the younger children’s latest preference in toys and less regard to traditional ones. McGowan shared that the company holds the best licensed brands of toys.
He also hinted that the international sales of Transformers action figures helped in the revenue increase by 20% making it $689.8 million.
The president and CEO of Hasbro, Brian D. Goldner, also shared how the sales increase was mainly due to My Little Pony and Transformer brands as well as a rise in demand for boys’ toys.